FOOTPRINT
Stepping Into a New Generation
2013-2014
Business Plan
William Cullen Bryant High School
48-10 31st Avenue
Long Island City, New York 11103
Tel: (718) 721-5404 Ext. 3210
Fax: (718) 728-3478
E-mail: footprint.ny@veinternational.org
Introduction to Footprint
Footprint is dedicated to providing its target market with high quality athletic footwear, accessories and sports
apparel. Footprint is a corporation and is in its third year of operations and remains the only Specialty Athletic
Footwear company within the New York City Virtual Enterprise network. Footprint consists of twenty two
dedicated hardworking employees who are fully committed to providing only the best service for our
customers, our communities and our shareholders. Our main product line consists of high quality and brand
name athletic footwear including Basketball, Baseball, Soccer, Football, Running sneakers; as well as casual
footwear. W e also have an accessory line which includes socks, backpacks, duffle bags, head bands/wrist
bands, pedometers, laces, sunglasses, hats and insoles. Our top priority is to provide comfortable, durable,
and trendy footwear, apparel and accessories. Some of our top brands include Nike, Adidas, Under Armour,
and Puma and they are popular among our target market. We offer accessory products that boost
performance in sports such as pedometers, headbands and sunglasses. This year we have expanded our
product line of sports apparel to include additional items such as athletic shorts, hoodies and Under Armour in
order to satisfy the growing demand of our target market and the influence of prime events such as the World
Cup in the summer of 2014.
Mission
Globally, people are seeking a healthier and amore fit lifestyle. Footprint’s vision is to meet this health and
fitness trend by providing quality name brand items to our customers. We will continue to contribute to
socially responsible causes within the communities in which we operate that are in line with health and
fitness. Finally, we promote and support our employees and customer efforts to “Go Green” in their everyday
lives.
Management Functions
Organizing and Planning
Our company is vertically organized implementing a chain of command starting at the top with our Chief
Executive Officer who puts forth the mission and then collaborates with the Vice Presidents of each
department to set goals for the company. The CEO manages the company and makes sure that all employees
are completing their tasks. The VPs of each department assign tasks to their associates making sure all tasks
are completed effectively and on time.
Footprint’s short-term objectives include reaching $2,000,000 in sales and achieving profits of over $50,000 in
the current fiscal year. Our strategies are to continue to participate in networking events, attend the
California and NYC international trade fairs.
Current Economic Condition/Impact on Business
The economy has been rising steadily. The GDP is 4.1% in the third quarter of 2013 compared to the second
quarter which had a GPD of 2.5%. The unemployment rate has dropped from 7.3% in October to 7.0% in
November. If the economy continues to do well this will increase customer spending which will boost our
sales.
Industry Analysis
The National Sporting Goods Association reported $19.6 billion dollars in sales for the athletic footwear
industry in 2012. This was a 6% increase over 2011.
Competitive Analysis
Footprint’s average price for Athletic Footwear is $130. According to the VE National Directory, our direct
competitor that specializes in athletic footwear is located in California and internationally in Austria. According
to the directory there are 6 national indirect firms and 34 internationally.
Target Market
Our target market is segmented into four categories: (1) Virtual Enterprise Students, (2) Adults, (3) Virtual
Enterprise Companies and (4) Non-Virtual Entity.
Market Segmentation
Demographics: Our target market primarily focuses on high school teenagers fourteen to eighteen within the
Virtual Enterprise network that are seeking stylish, popular, high-end footwear and apparel. They are racially
and ethnically diverse and have incomes consisting of 30k through 100k.
Psychographics: Both teens and adults are into a healthy and fit lifestyle. However, adults seek durable and
comfortable shoes while teens seek quality, brand names and fashionable footwear. Nationally we focus on
California, due to the trade fair in San Francisco this March, and internationally Brazil due to the World Cup
this summer. We also target adults at the trade fairs in New York City and California.
Geographic: Primarily the target market is located in New York City consisting of over 48 firms in New York
and approximately 534 firms nationwide. Footprint is conveniently positioned in Long Island City, at William
Cullen Bryant High School placing us in the proximity of our prime geographic target market-New York City.
Marketing Mix
Product: Our product line consists of athletic footwear, casual footwear, accessories and apparel from the top
brands that are popular among our customers. By 2014 we plan to offer customized footwear to our
customer.
Price: Footprint continues to implement a cost-based approach to pricing by pricing its products to coincide
with the industry benchmarks of a 55% Cost of Goods Sold and a 45% Gross Profit Margin. Since our target
market consists mostly of high school teenagers who are brand and fashion conscious, they were willing to pay
for higher quality and higher priced athletic footwear last year.
Placement: Our products are mainly sold to non virtual entities (64%), online sales of (20%) and trade fairs
(16%).
Promotion: Our promotional methods include our website, our internally generated catalog, fliers and
newsletters and sponsored tournaments. We are also collaborating with T-Squared, an advertising company,
which includes background advertising, website mention, social media mention and sidebar advertising space.
We will have video commercials advertising our products at the California and New York City Trade Fairs.
Positioning: We update our product line to frequently meet the trends of our target market. We are able to
sell our products at higher prices since we primarily sell well-known popular brands of footwear. We
emphasis quality, comfort and style.
Financial Data
Income Statement
As of December 31, 2012 year-to-date (ytd) Footprint had approximately $1.3 million in sales, on pace to
reach approximately $2 million in projected sales at the end of the fiscal year in April 2014. Footprint’s gross
profit margin of 45% is in line with the industry benchmark resulting in a gross profit projection of $900,000.
Footprint’s total operating expenses consist primarily of Salaries Expense as the NYC VE has moved towards
paying employees based on entry level salaries within NYC- this is projected to total $838,375 leaving
Footprint with a projected Net Income before taxes of $61,625.
Cash Budget
Footprint’s cash budget for the fiscal year 2013-2014 continues to show great liquidity with a cash balance of
at the end of December 2013 of $694,810. Our most significant cash inflows include $300,000 received in
October in exchange for common stock. Sales to our non-virtual entities totaled nearly $1.3 million in
November. December Ytd 2013 inflows were approximately $1.6 million slightly lower than the $1.7 million
planned due to lower online sales as a result of a delay in rollout of the Website expected in January. We
anticipate that sales at the California and NYC Trade Fairs will enable us to reach our projected cash inflows of
over $2.2 million by April 2014. Our outflows were predominately due to our Cost of Goods Sold and Salaries
with outflows projected to total $1.8 million resulting in a projected cash inflow as of April 2014 of $411,738.
Balance Sheet
Footprint is liquid with a projected current ratio of 3.63 due in large part to a projected cash balance over
$500,000 compared to current liabilities projected to total nearly $139,000.
Our 5 year Loan is our largest liability with an outstanding balance projected to be approximately $49,000.
Our Stockholders Equity consist of Common Stock valued at over $187,000 and Paid in Capital of over
$146,000 as a result of issuing stock in October at $19.52 per share compared to $10 par value stock.
Break-Even
Footprint projects that it will surpass its breakeven point of 14,331 pairs of athletic footwear and $1,863,056
in sales by the end of the fiscal year in April.
SWOT
Footprint has significant strengths which include our convenient location, substantial quality, highly qualified
staff, and we are socially responsible within the community. On the other hand are weaknesses are not
attending the trade fairs in Germany and Belgium, as well as needing to improve upon our Business to
Business sales. Footprints opportunities are if there is a decline in unemployment and an increase in GDP,
higher salaries and higher spending and consumer confidence, and if the US dollar continues to decrease
compared to the Euro prices will drop. Our threats include the deterioration of economic conditions ,if there is
fallout from poor working conditions in supplier countries, and if the us dollar decreases compared to the Euro
prices will drop.